- CryptoCompare reported a recent peak of 11,000 trades per second and 6 million per hour.
- Bitcoin has risen nearly $2,000 since experiencing its sub-$5,000 low last week.
- The stage is set for BTC to prove itself as a “safe haven” during the coronavirus pandemic, says CryptoCompare CEO.
The coronavirus pandemic has had massive effects on our financial markets, but according to new data from digital research firm CryptoCompare, the crypto industry may be better off than we thought.
Over the past two weeks, the Dow Jones has dipped below the 20,000 point mark here and there for the first time in three years, while crypto has also taken a few nosedives. Bitcoin, for example, fell from around $8,700 into the high $4,000 range in less than a week.
But, says CryptoCompare, investors’ interest is piqued. The platform has reported a high of roughly 11,000 trades per second and roughly six million per hour in recent days. That’s a 200 percent increase over average usage.
Charles Hayter—CEO and co-founder of CryptoCompare—said that one of investors’ big questions surrounding BTC is whether it qualifies as a “safe haven” asset. At first glance, the world’s number one digital asset appears shaky, as the crypto market faltered on March 12. It was around this time that Bitcoin fell roughly 30 percent from February alongside the S&P and the FTSE, which dropped by 29 and 31 percent respectively.
Despite what seem to be similar-sized falls occurring at the same time, Bitcoin has spiked to just shy of $6,500 since yesterday afternoon, meaning it’s up nearly $2,000 since it’s lowest point during the crisis. Hayter, like some others, believes it’s on the verge of proving itself as a “less correlated” store of value.
“With the upcoming halving of bitcoin coinciding with one of the biggest experiments in money-printing and central bank intervention in modern history, the conditions are ripe for bitcoin to prove itself as a deflationary, less correlated safe haven,” he explained in the report.
Data also shows huge bursts in trading via digital exchanges on March 13—the day after the crypto space experienced its mega drop—with platforms like Coinbase and Bitstamp earning the top spots.
Hayter concluded by stating that while the coronavirus has certainly taken a nasty toll on the markets, crypto remains in solid shape, and conditions are ripe to help digital currencies establish themselves as legitimate, worthwhile assets.
“With volumes, data usage and Google searches for bitcoin soaring at such an important juncture in market history, crypto markets are far from falling apart,” Hayter claimed.